Gold is experiencing strong demand from Europeans lately, as investors there worry the region's debt problems will persist and devalue the euro, said Adam Klopfenstein, senior market strategist at commodities brokerage firm Lind-Waldock.
"Gold is the market that Europeans want to own. Their money is going into gold because at some point, people who have already been burned by their own currency want to own something tangible," he said.
I'm sure that there is no surprises when we hear that individuals are backing off from the forex market for fear of its volatility and fluctuations. However, they are not alone.
Countries, unions are all backing off in the currency market as well. They are extremely timorous now. They fear that the stock markets will crash once again and then recession will start to hit everyone.
Therefore, many countries, including the super powerhouses like China and India, along with the United States of America are already storing up their gold reserves to strengthen their countries' reserves and also to reduce their vulnerability in today's volatile market.
It is de facto synonymous to bonds. They are very stable and a worthy buy.
Credits -cnn, -ibtimes, -solarnavigator
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